Inequality In Income Distribution Research Articles

Macroeconomic policy and policy spaces during the COVID-19 pandemic – case studies from Germany, Brazil and India

Theoretical analysis, empirical development and case studies show that room to manoeuvre stabilising macroeconomic policies during the COVID-19 crisis in the years 2020 and 2021 were fundamentally different in the Global South and Global North. The latter used extensive discretionary fiscal and monetary policy, whereas the former used monetary policy only in a very limited way and fiscal policy to a much smaller extent than in the Global North. While the main reason for this difference is, inter alia, the position of countries in the global hierarchy of currencies, the political orientation of governments in general and towards COVID-19 also played a significant role. The income effects of the pandemic for the poor in Germany were moderate, but disastrous in the Global South, as evidenced by case studies on Brazil and especially India. As a result, the global pandemic added to the trend of increasing inequalities in income and wealth distribution, both within and between countries. Some shortcomings of policies during the pandemic include not raising taxes on higher income or wealth groups, implementing steps towards a global tax system or supporting international capital controls to increase the space for national policies.

The Causality Relationship Between Growth and Inequality: Java and Sumatera Studies

This research article has the theme of the causal relationship between growth and inequality with the object of research being the provinces on the island of Java and Sumatra island. The purpose of this study is to identify and analyze conditions of inequality in income distribution and economic growth and to analyze whether there is a causal relationship between inequality income with economic growth in provinces on the island of Java and provinces on the island of Sumatra during the 2015-2020 period. The research method used is quantitative descriptive using the Granger causality test analysis tool. Based on the research results, the condition of economic growth in each province on Sumatra Island fluctuated, with the highest average economic growth in South Sumatra Province and the lowest in Riau Province. Inequality in the distribution of provincial income on the island of Sumatra fluctuates, the highest average income distribution inequality is in the provinces of South Sumatra and Bengkulu, and the lowest is in the province of the Bangka Belitung Islands. Meanwhile in Java, economic growth also fluctuated. The highest average economic growth was in DI Yogyakarta Province, and the lowest was in Central Java Province. Inequality in the distribution of provincial income in Java Island fluctuates, with the highest inequality in Yogyakarta province and the lowest in Central Java province. In addition, the results of the Granger causality test show that there is no one-way or two-way causality relationship between economic growth and income inequality on the islands of Sumatra and Java.

PENGARUH TINGKAT PENDIDIKAN, UPAH MINIMUM, INVESTASI, DAN BIAYA PEMBANGUNAN INFRASTRUKTUR TERHADAP KETIMPANGAN DISTRIBUSI PENDAPATAN

This study aims to analyze the effect of education level, minimum wage, investment, and infrastructure development costs on the inequality of income distribution between districts / cities in Bali Province. The location of the study is in districts / cities in Bali Province with secondary data obtained from publications from the Central Statistics Agency, Public Works Office, Spatial Planning, Housing, and Settlement Areas of Bali Province. The number of observations of this study was 90 observations with a period of 10 years and involved 9 regencies/cities in Bali Province. Data collection method in this study through non-participant observation techniques. The analysis technique used is panel data regression analysis. The results of the panel data regression test showed that the most appropriate model was the random effect model (REM). The results of this study show that education level, minimum wage, investment, and infrastructure development costs simultaneously affect income distribution inequally. Partially, the variables of education level and minimum wage have a positive and significant effect, while investment and infrastructure development costs have a negative and insignificant effect on the inequality of income distribution between districts / cities of Bali Province.
 keyword: Education, Minimum Wage, Investment, Infrastructure, Income Distribution
 Klasifikasi JEL: I25, J3, E2, O1, D33

Analisis Pengaruh Pendidikan dan Gini Rasio terhadap Tingkat Pengangguran di Kalimantan Selatan

Purpose: The unemployment rate as well as the labor force indicate the large number of people who must be included in the development process. This shows that the dynamics of the development process must be able to involve the entire work force, meaning that a large number of work force can become a burden for economic development. Apart from education, another aspect that influences the unemployment rate is the unequal distribution of income (gini ratio). Inequality in income distribution is a problem of differences in income between the richest and the poorest individuals. The greater the income gap, the greater the variation in income distribution. This study aims to obtain quantitative "evidence" regarding the effect of education and the gini ratio on the unemployment rate. Methodology: Based on the research objectives, this research is a quantitative research with the type of explanatory research, which will explain the causal relationship between the independent variables and the dependent variable through hypothesis testing. The type of data used in this study is secondary data. The secondary data used is in the form of a time series from 2013 to 2017. The data analysis used is multiple linear regression analysis. Results: Based on the research results it is known that (1) Education partially has a positive and significant effect on the unemployment rate in South Kalimantan. This means that education can reduce the number of unemployed in accordance with the theory of human capital, therefore education is one of the factors that needs to be improved so that the quality of human resources increases and has competitiveness; (2) The Gini ratio (income inequality) partially has a positive and significant effect on the unemployment rate in South Kalimantan. This means that when income inequality is high, the unemployment rate will also increase.

Tax reliefs for young families and for children

The article examines the tax reliefs related to families and parents in the Bulgarian national legal system as the only tax policy measures for rising the birth rate, stimulating people to get married and for a more equal income distribution within this group of taxpayers. As a comparison the article presents the German family income tax system with the tax brackets.

Determinants of The Human Development Index During the Covid-19 Pandemic: A Case Study for Regencies/Municipalities In Jambi Province

It is expected that the COVID-19 pandemic could cause a global recession with a significant impact on disrupting economic activities. This study's primary objective is to determine the impact, effect, and determinant of Human Development Index (HDI) during the COVID-19 pandemic in the regencies/municipalities of Jambi Province, utilising four independent variables: economic growth, poverty rate, unemployment rate, and income distribution inequality. To analyse the impact of COVID-19 during the pandemic on independent variables, the author used different test analyses and a quantitative descriptive method. Using a regression panel model, the author analyses the impact of a pandemic on Jambi Province's HDI for the years 2017 to 2021. Different test results indicated that the COVID-19 pandemic had an effect on economic growth, poverty rate, and unemployment rate in the regencies/municipalities of Jambi Province, but had no effect on income distribution inequality. The regression estimation of panel data using a Fixed Effect Model reveals that the poverty rate and open unemployment rate have a significant effect on the HDI in the regencies/municipalities of Jambi Province, whereas economic growth and income distribution inequality do not.

INCOME INEQUALITY AND DOMESTIC VIOLENCE: AN EMPIRICAL ANALYSIS FROM MICS SURVEY DATA

The aim of this paper is to estimate domestic violence in Punjab (Pakistan) and to empirically investigate the impact of income inequality on domestic violence in Punjab (Pakistan) by using the Multiple Indicators Cluster Survey (MICS) microdata. Domestic violence is a human right violation and is a worldwide issue. Over the world, about one in three (35%) of women experience domestic violence. The present study uses domestic violence as dependent variables and the Gini coefficient as independent variable and other control variables at the district level in Punjab (Pakistan). Results of this study show that the Gini coefficient has a positive and significant relationship with domestic violence. The outcome of this study shows that the higher the unequal distribution of income, the higher the violence. In this study, northern and eastern districts in Punjab are more developed and have more equal distribution of income, while southern and western districts in Punjab have more unequal distribution of income and other resources. The government of Punjab should prioritize Southern and western districts, like Rajanpur, Bahawalnagar, Bahawalpur, DG Khan, Bhakkar and Khushab, Muzaffargarh and Layyah, for focused intervention for poverty eradication and equal opportunities for everyone. Keywords: Domestic Violence, Income Inequality, Punjab, Multiple Indicators Cluster Survey

The Effect of Government Expenditure in the Education Sector, Human Development Index, and Economic Growth on Poverty Rate in Eastern Indonesia

This study aims to determine the effect of government expenditure in the education sector, human development index, and economic growth on poverty rates in Eastern Indonesia. The research method of this article is quantitative, with multiple linear regression analysis techniques. The data used in this study is secondary data obtained through the central statistics agency in the form of panel data from 13 provinces in Eastern Indonesia. The results stated that (1) government spending in the education sector did not have a significant effect on Poverty;(2) the human development index has a negative and significant effect on Poverty; (3) economic growth has a negative and significant effect on Poverty. The results of this study imply that direct subsidies or individual subsidies sourced from government spending in the education sector need to be targeted at low-income households. In addition, direct government spending on public services and infrastructure, especially in the welfare, health, and education sectors, is prioritized for low-income households to improve the human development index. This public investment transmission mechanism is one of the Government's efforts to accompany economic conditions towards Poverty and equal income distribution. Thus, it will reduce the poverty rate in Eastern Indonesia.

The Relevance of Allocation and Distribution of Income in The Islamic Economic Perspective in Indonesia

The allocation and distribution of a country's income in the 4.0 era need to be given special attention so that it can be allocated efficiently by each individual. The efficiency of allocation and distribution of income in a capitalist economic system has an impact on income inequality in society which can lead to conflict and also creates poverty. But in achieving this prosperity, it is as if there is no government intervention. This study aims to explore how the allocation and distribution of state income are seen from an Islamic economic perspective and also to compare the capitalist distribution system with the Islamic distribution system in the 4.0 era. The research method used is library research which originates from books, journals, the internet, and other relevant sources. The results of the study show that the allocation and distribution of state income from an Islamic economic point of view is an economic concept that has the concept of equal distribution of wealth or income for the community, applicable in Indonesia, which will produce prosperity for the community. The comparison of the capitalist distribution system is based on absolute ownership of the factors of production so that the main goal is to make a profit. As much as possible appears to ignore moral and social values. The Islamic economic distribution system in the era of disruption upholds moral and social values because, in addition to achieving good profitability, Islam also teaches problems in economic activities. With Islamic economic equality, it is hoped that it can reduce the gap in economic inequality to realize prosperity. Therefore, sharia distribution can be carried out by prioritizing Islamic business ethics which is implemented through the concept of Rahmatan lil 'Alamin in the economy. Likewise, in Indonesia, where the majority of the population is Muslim, special attention is needed so that it can implement the allocation and distribution of state income through the concepts of Zakat, Infak, Shadaqah, and Wakaf adapted to the times.

Environmental inequality and population exposure to air pollution in Denmark

ABSTRACT This study examines the environmental inequality, which is associated with air pollution in Denmark, by modelling street concentrations at addresses of all households in Denmark, and correlating the findings on key air quality pollutants to individual household income. The study furthermore analyses the relative distribution of exposure to risks between and within different commuting areas in Denmark. The findings are discussed in relation to comparable findings in the international literature on environmental inequity and inequality of exposure to environmental risks. Overall, the study showed limited environmental inequality and weak correlations between air pollution exposure and household income in Denmark thereby deviating from most findings in the international peer literature that finds strong correlations. Likely explanations for the weak correlations may be found in strict Danish environmental regulation that reduces overall exposure to the population, and Danish laws prohibit building residential areas nearby factories or building factories nearby residential areas as part of zoning in urban planning. Also, a relatively equal income distribution in Denmark, and the relation between the geographic distribution of air pollution and income groups where low-income groups do not systematically live in polluted areas and high-income groups in less polluted areas also add to the explanation. Key policy highlights The first study to examine Danish environmental inequality associated with air pollution exposure at street level. Modelled air quality street concentrations at all residential addresses in Denmark. Analyses of environmental inequality between and within different commuting areas. Very limited environmental inequality was found between air pollution exposure and household income that deviates from most findings in the international peer literature. A better knowledge foundation on environmental inequality could inform future policy making to reduce environmental inequality.

Poverty in Ukraine: evolution of interpreting and analysis of impact factors

Purpose. The purpose of the article is to analyze the evolution of interpretation of the poverty as a category. In addition, among the aims of the article is analysis of the dynamics of the poverty level in Ukraine and Lviv region as well as determination of the most effective economic factors affecting the poverty level.
 Methodology / approach. An analysis of the importance of the impact of annual growth of Ukraine’s GDP, GDP per capita, unemployment rate, and other possible factors on poverty level was carried out using statistical tools, namely the Pearson’s, Kendall’s, Spearman’s and Fechner’s correlation coefficients. Research methodology is a systematic approach to the study of the phenomenon of poverty using general scientific methods, as well as statistical methods. The questionnaire method was used to interview residents of cities and villages of Lviv region; methods of correlative-regression analysis were used to assess the importance of individual factors on the poverty level in Ukraine. Authors built VAR-model for the optimal analysis of the poverty level in Ukraine and factors of its influence.
 Results. After analyzing the value of the coefficient of determination, the authors concluded that the most significant factors of poverty in Ukraine are GDP per capita, PPP (R2 = 0.50), unemployment rate (R2 = 0.42), interest rates on loans (R2 = 0.21), inequality of income distribution (Gini index) (R2 = 0.20), taxes on income and profits (R2 = 0.15). GDP annual growth rate accounts for more than 64% of changes in poverty level in the second period. The value of the inequality of income distribution measured by the Gini index in the dynamics of the poverty level increases from 3.9% in the second period to 5.2% in the 10th period. In addition, value of the interest rate on loans and NBU’s account rate increase over time, accounting for approximately 10.0% and 2.4% of the variation in the level of poverty, respectively. Thus, level of interest rates is an important factor influencing the dynamics of poverty level in Ukraine.
 Originality / scientific novelty. An analysis of the dynamics of the poverty level in Ukraine was conducted, including a survey of residents of towns and villages in the Lviv region. A direct relationship between the interest rate on loans and the level of poverty has been established. In addition, the direct relationship between the inequality of income distribution and poverty level was confirmed. 
 Practical value / implications. It is proposed to use the correlation coefficients of Pearson, Kendall, Spearman and Fechner to calculate the strength of connection between the poverty level and its economic factors. Authors suggest applying VAR-model for optimal analysis of the poverty level in Ukraine.

Study on Whether International Trade Has Increased the Inequality in China's Domestic Income Distribution

Inequality in income distribution is a major problem faced in China's and even global development, and has traditionally attracted much academic attention. How to reduce the income distribution gap and achieve common prosperity has also been an important concern of the government for a long time. Meanwhile, foreign trade plays a pivotal role in China's economic development, and along with the changes in the external trade environment and internal economic policies, the country is witnessing a new situation of full openness in all regions. Based on the above background, this paper investigates whether there is an impact of foreign trade on China's income distribution. The empirical results show that foreign trade has increased the income distribution inequality in China, and the impact of export trade on intra-regional income inequality is greater than that of import trade on intra-regional income inequality; the impact of export trade on income inequality in coastal cities is greater than that in inland cities, when viewed by coastal and inland. Finally, based on the empirical results, this paper puts forward three suggestions on narrowing the inequality of domestic income distribution: reasonable guidance of foreign investment, optimization of industrial structure, and increasing the cultivation of talents.

Does air pollution decrease labor share? Evidence from China

Labor share is one of the most significant indicators for income distribution and social inequality. Many studies have documented its decline and provided explanations from various aspects in recent years. This study explores labor share decline through the lens of air pollution, which has been ignored in the literature. With the two-stage least square (2SLS) regression while using thermal inversion as an instrumental variable, we identify air pollution’s impact on firm-level labor share. The results show an increase of 1 μg/m3 PM2.5 concentration leads to a 0.17 percentage point decrease in firms’ labor share. We test two possible channels through which air pollution could influence labor share. The decreases in firms’ labor and production productivity, and average wage are the main channels from the intensive margin. For extensive margin, we mainly focus on the impact on employees, and capital usage and identify its different effects across different technology firms. We find no significant effects on capital usage. Meanwhile, low-tech firms hire more employment to offset production loss due to air pollution, whereas there is no significant effect on employment change in high-tech firms. For heterogeneity, the impact is larger for private firms, firms with lower education-level employees, firms without labor unions, and labor-intensive industries. Our results suggest that raising public awareness of air pollution could have contributed to reducing health damage and social inequality.

Do Different Socio-economic-demographic Factors Matter in COVID-19 Related Stay-at-home-tendencies Across the US States?

This study investigates the potential impacts of different socio-economic-demographic (henceforth, SED) factors in COVID-19-related stay-at-home-tendencies (henceforth, COVID-19-SAHTs) in the US. This requires a state-level investigation rather than a country-level since the US states exhibit large SED differences from one another. To this aim, the K-Means Cluster analysis and the panel autoregressive distributed lag models are applied. The main empirical finding indicates that different SED factors in different US states matter in COVID-19-SAHTs. Additionally, people in the states which have more equal income distribution, higher rate of basic literacy, and less population density stay at their homes more during the COVID-19 pandemic. These findings may provide some vital pre-information to the state policymakers about how much the people from different SED statuses will tend to comply with future COVID-19 state restrictions such as stay-at-home orders and others. Until the scientists create a proven vaccine for the coronavirus, states will most likely continue to issue some COVID-19 restrictions to reduce the spread of this pandemic.

"Hunting Africa": how international trophy hunting may constitute neocolonial green extractivism

In the post-Cold War neoliberal moment of the mid-1990s, Safari Club International's (SCI) nascent but now defunct 'African Chapter' published a Strategic Plan for Africa. Its aim was to secure the "greatest hunting grounds in the world" for access by SCI's hunting membership, the core of which is based in the United States. In advocating private sector-led trophy hunting under the umbrella of the SCI "market place", the plan supported an archetypal mode of 'green extractivism': killing indigenous African mammals and exporting body parts as hunting trophies was justified as 'green' by claiming this elite and arguably 'neocolonial' extraction of animals is essential for wildlife conservation. Already in 1996 SCI deflected scrutiny of this form of 'green extractivism' through promoting a view that any critique of this putative 'green hunting' should itself be dismissed as 'neocolonial.' This discursive twist remains evident in a moment in which trophy hunting is receiving renewed attention as countries such as the UK attempt to write trophy import bans into legislation. I engage with these politicized claims and counter-claims to foreground the lack of neutrality permeating trophy hunting discourse. I work with recent political ecology engagements with 'post-truth politics' to unpack SCI-supported advocacy for using accusations of 'neocolonialism' to counter critique of the neocolonial dimensions of trophy-hunting; showing how elite and greened extractivism through recreational access to land and African fauna is thereby consolidated. I draw on case material from Namibia – a country exhibiting stark inequalities of land and income distribution alongside a thriving trophy hunting industry – to explore how extracted 'green value' from 'conservation hunting' may shore up, rather than refract, neocolonial inequalities.

Summaries of Articles

Summaries of Articles

Analysis of Inequality of Income Distribution in North Sumatra in 2011-2022

In a country, both developing and developed countries, the problem that often occurs is economic problems or income distribution that is not evenly distributed in all corners of the country. Indonesia is no exception, especially in the province of North Sumatra. The research method that the author uses is descriptive research method, namely the research results are obtained from accurate and clear secondary data sourced from Gini coefficient data and the Central Bureau of Statistics (BPS). From the results of observations or data results obtained that the result of unequal income distribution in Indonesia has resulted in social inequality, poverty and income inequality. The effect of income inequality is that money causes the rich to get richer and the poor to get poorer. As a result, many new problems arise from the income inequality effect. The purpose of this study was to determine the inequality of income distribution in North Sumatra from 2011 to 2022. The conclusion obtained from income distribution data in the North Sumatra region is that income inequality in this region has increased from 2011 to 2022.

Аналіз соціально-економічних показників розвитку України у вимірах інклюзії

Inclusive development of the national economy covers all population groups in economic development, ensuring their rights and opportunities and equal access to resources and services, including labor, education, health care, and social protection. It also includes providing sustainable sources of income for all population groups and reducing social inequality. Inclusive development of the national economy contributes to the country's sustainable development, increasing resource use efficiency and competitiveness in the international market. The article aims to analyze the socio-economic indicators of Ukraine's development regarding inclusion. The results. It was determined that inclusive development is assessed using a complex system of indicators that cover various aspects of the economy and society: income and employment; accessibility and quality of education and health care for different social groups; the level of unemployment, exclusion from the labor market and social isolation; availability and quality of housing and infrastructure for other social groups; level of inequality and lack of discrimination based on gender, race, ethnic origin, age, disability, etc.; innovative development and support of small and medium-sized businesses, contributing to the creation of jobs and reducing inequality in income distribution, etc. The analysis showed that the population of Ukraine decreased by 0.7 million during the last two years. It was determined that the decrease in population is due primarily to natural movement, that is, the number of deaths, which significantly exceeds the number of births. In addition, the decrease in population occurs mainly in rural areas. It was emphasized that there is a migration movement in Ukraine. It was determined that in 2020, the number of arrivals amounted to 576,000 people, which was higher than the number of departures - 554,500 people. However, in 2021, there was a decrease in the number of arrivals to 435,300 people and the number of releases to 426,000 people, which caused a reduction in migration growth to 9,300 people. However, in 2022, the number of arrivals increased again to 476.9 thousand people, which led to an increase in migration growth to 21.3 thousand people. It has been proven that the population is an integral part of the inclusive development of Ukraine and an essential factor in its success. Keywords: inclusive development, socio-economic indicators, demographic processes, migration, development of Ukraine.

Voter Turnout and Income Inequality in Latin America

The purpose of this paper is to gain some insight into the age-old question: Why is there income inequality at all in our modern world? I narrow this question down into a sub-question that I can investigate: what is the effect of voter turnout on income inequality? I narrow my regional focus to Latin America and add a temporal focus to the years from 2000 to present. I theorize that higher voter turnout leads to decreased income inequality. This is because, as theorized by Lijphart (1996), low voter turnout is by and large a result of the people in low economic groups’ failure to turnout to vote. Therefore, the alternate hypothesis of this thesis is that high voter turnout leads to more equal income distribution in Latin America from 2000 to present. I discover that I cannot reject my null hypothesis. There is not sufficient statistically significant evidence to believe that, based on a multivariate ordinary least squares regression analysis, increased voter turnout leads to increased income equality. This paper has implications for future researchers studying the effects of voter turnout in Latin America and for researchers interested in answering macroeconomic questions about this region. To see the complete thesis, please visit https://scholar.colorado.edu/concern/undergraduate_honors_theses/m900nv68b.

Balancing Funds, Investment, Length of Schooling, Unemployment Rate and Income Inequality in Indonesia

The goal of a country's economic development is an equal distribution of income. This study aimed to analyze the direct and indirect effects of balancing funds, domestic investment (PMDN), foreign investment (PMLN), the average length of schooling (RLS), and the open unemployment rate (TPT) on income inequality in Indonesia in 2015-2021. GRDP per capita is an intervening variable, while income inequality is the dependent variable with the Gini Ratio as an indicator. This study uses secondary data in the form of panel data. The method used is Random Effect Model (REM) and Fixed Effect Model (FEM). The results of the panel data regression show that the variable balance funds and RLS have a negative and significant effect, and PMDN has a positive and significant impact on income inequality. Indirectly, the variable balancing funds, PMLN, and RLS negatively and significantly affect income inequality through GRDP per capita. Meanwhile, the TPT variable does not affect income inequality.